Sun Shining on Plans of State, Local Leaders for World Solar Headquarters
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What was considered just about impossible apparently is happening.
Michigan is leading economic development in the nation!!!
Workers in jobs lost by the fading auto industry punching time clocks again in "green energy" companies???
Yes, it's true!!!
Critics of the Michigan Economic Development Corporation (MEDC) like the Mackinac Center in Midland must be biting their lips.
Sure, the idea that huge tax incentives are necessary to attract industries is vexing (the Mackinac Center has a point there) -- but every state is doing it and without the credits Michigan would be left behind.
Mackinac "think tankers" cite a study showing that "only" 17,791 jobs resulted from 61,043 promised by the MEDC for incentive programs between 1995 and 2004.
There was no estimate of the number of jobs that would have been created had the state kept hands off and allowed the "free market" to operate. It seems obvious that other states, that are throwing money at industries, would snatch up all the jobs.
Key to the Michigan strategy is that, despite having to virtually give away the store, the net gain in economic growth far outweighs the tax incentives in the long run. It brings in workers who pay taxes, build homes and contribute to the local economy. Without them, there would be only more decline.
All around the Midland Grinches are positive signs the state's much-maligned strategy is working.
The Solar Valley is spreading sunshine in the Saginaw Valley, the Great Lakes Bay Region, the Tri-County area -- whatever you want to call it.
GlobalWatt of California's Silicon Valley last week announced a $177 million solar plant development in Saginaw, at the site of the former Nodular Iron Foundry.
While the City of Corpus Christi was ready to grant $2.8 million in incentives for GlobalWatt to locate there, the company applied for a grant from the Texas Enterprise Fund but was denied, said J.J. Johnston, the executive vice president at the Corpus Christi Regional Economic Development Corp.
The company planned a research partnership with Texas A&M University-Corpus Christi. However, GlobalWatt hasn't eliminated Corpus Christi from consideration and may expand there in 2011, company officials said.
A new market report says that the photo voltaic (PV) industry's first "Solar Cycle" has taken place in 2009, with end-market demand shrinking 14 percent compared to the previous year. Changes in Spain's incentive policy aggravated by the worldwide economic crisis and tight credit markets caused the contraction, the report said.
Lower prices, diversification of the demand base, and positive incentive movement in multiple regions are expected to drive substantially higher demand in 2010.
Solar cell demand in 2009 is proving to be robust and setting the stage for 38 percent growth next year, said one industry expert.
EverGreen Solar has built a $55 million plant in Midland that will employ 100 people to make a patented product for solar panels.
Dow Chemical has unveiled its solar-energy shingles for building roofs and siding, a new product destined to put many back to work.
Dow in partnership with Kokam America Inc. is beginning work on a huge battery plant in Midland to employ about 800 workers.
This is Michigan's Solar Valley, that economic development leaders believe is destined to become the center of solar energy research and production for the nation.
Michigan Governor Jennifer M. Granholm has announced a significant addition to Michigan's burgeoning clean-energy industrial base as Georgia-based Suniva Inc. (www.suniva.com) will invest $250 million in a new solar manufacturing facility in Saginaw County's Thomas Township.
Suniva will create 500 new jobs over the next five years subject to receiving a Department of Energy loan guarantee.
"Today we welcome Suniva to our growing list of world-class green manufacturing leaders that are establishing operations here," Granholm said. "They're coming here for the skilled workforce, strong work ethic and competitive business climate that are synonymous with Michigan."
The Michigan Economic Growth Authority (MEGA), on Michigan Economic Development Corporation recommendation (MEDC), has approved a photovoltaic Michigan Business Tax (MBT) credit valued at $15 million over five years.
Michigan's photovoltaic MBT credit provides a refundable tax credit for the construction and operation of a facility that develops and manufactures photovoltaic technology, photovoltaic systems or photovoltaic energy. Other state and local incentives will be considered at a future date.
"For the United States to reach its potential as a leader in renewable energy, it must support not only new innovative technologies, but also must revitalize its manufacturing base to aid these technologies in achieving swift scale," said John Baumstark, CEO of Suniva. "All states have a powerful role to play in bringing new jobs and new technologies to market, and we applaud Michigan's efforts."
Suniva Inc. was founded by Dr. Ajeet Rohatgi through his work at the Georgia Institute of Technology's University Center of Excellence in Photovoltaics which was started in 1992. The company manufactures and markets high-efficiency, low-cost photovoltaic cells and markets high power-density modules in its current 100 MW facility in Georgia. Suniva's investors include NEA, Warburg Pincus, and Goldman Sachs.
"We worked closely with state and regional leaders to meet with top Suniva officials, package legislation, and secure incentives to attract this growing solar company to the Great Lakes Bay Region," Saginaw Future Inc. President JoAnn Crary said.
"We are grateful to the governor, the MEDC and our elected delegation for supporting the solar legislation needed to make this happen. This decision by Suniva adds to a five-year total of more than $2.75 billion invested in solar businesses in the Great Lakes Bay Region."
The MEGA board has approved incentives to move forward the Wixom transformation project announced last month. Clairvoyant Energy Solar Panel Manufacturing Inc. was granted a photovoltaic MBT credit valued at $25 million over two years, and Xtreme Power Inc. received an advanced-battery credit valued at $100 million over four years.
Clairvoyant Energy and Xtreme Power plan investments of $857 million (over four phases) and $475 million, respectively, to redevelop the 320-acre plant site and its 4.7 million square feet of building space to manufacture solar power (Clairvoyant Energy) and energy-storage systems (Xtreme Power).
The redevelopment work at the Wixom site is expected to begin early next year with manufacturing at the site slated to begin in late 2011. The redevelopment plan is expected to create more than 4,000 direct jobs, including 750 direct jobs by Clairvoyant, 2,500 direct jobs by Xtreme Power, and those created by local suppliers as well as thousands of indirect jobs.
"Thanks to a coordinated strategic plan driven by research and designed to leverage our strengths, we are now out in front of our competition to capture the solar market and create thousands of new jobs in Michigan," MEDC President and CEO Greg Main said. "I commend Governor Granholm, our state legislators, and our federal lawmakers for giving Michigan the tools we need to grow this industry and create jobs."
Granholm said her administration is working hard to make Michigan the epicenter for green manufacturing by providing a series of incentives.
In August, 12 Michigan projects were awarded more than $1.35 billion from the U.S. Department of Energy to expand their advanced-battery manufacturing capabilities in the state.
Hemlock Semiconductor Corporation, the world's leading producer of polycrystalline silicon, the raw material in one third of all electronic devices and the driver for the solar industry, is expanding its Mid-Michigan operations.
Evergreen Solar, Inc. is investing $35 to $50 million for a new 31,400 square foot manufacturing facility to produce components for the company's patented "STRING RIBBON" (TM) wafer solar cells. The Mid-Michigan location is close to company suppliers Dow Chemical Company and Dow Corning Corporation.
Dow Corning Corporation has opened a $3 million, 27,000 square foot Solar Module and Assembly Application Center in Mid-Michigan region. Facility includes a laboratory, equipment and testing facilities for evaluating material solutions used in the manufacturing of solar panels.
The Dow Chemical Company has received a $1.7 million brownfield tax credit to help with its plans for a $50 million solar-energy project, an emerging technology known as "building-integrated photovoltaics," putting solar energy generation into building materials.
Central Insulated Glass has a new 12,000 square foot facility that shows off its "curtain wall," a floor-to-ceiling, high-efficiency glass design. CIG completed the new building in June 2008 and is ready to expand again to meet customer demand.
The Dow Chemical Company has invested $100 million to expand and upgrade its Dow Automotive facility.
GANTEC has received a $50,000 loan from RSPPA program to support developing organic pesticides and granular soil adjuvants from the seeds of the African neem tree. The company is located in the Mid-Michigan Innovation Center, Midland. The RSPPA program supports Michigan's technology businesses.
BWP Transport, Inc. invested $1 million in Mid-Michigan's Eastwick Industrial Park to better serve the Dow Chemical Company. BWP trucks haul non-hazardous plastic pellets from Dow to locations all across the country.
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